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Insecure work and Ethnicity

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  • Insecure work and

    Ethnicity

  • Insecure work and Ethnicity 2

    Executive Summary

    Our previous analysis showed that there are 3.2 million people who face

    insecurity in work in the UK, either because they are working on a contract that

    does not guarantee decent employment rights ( including zero hours contracts,

    agency and casual work), or because they are in low paid self-employment (

    earning less than the government’s National Living Wage).

    This analysis show that Black and Minority Ethnic (BAME) groups are

    persistently disadvantaged in the labour market. Overall, the employment rates

    for White people (76.1 percent) is significantly higher than for those from a

    minority ethnic group (64.2 percent). The TUC believes that race discrimination

    plays a major role in explaining these inequalities, as does the lack of access to

    employment opportunities for BAME workers. The growth of insecure work has

    exacerbated the inequalities that BAME workers already face.

    This analysis shows that BAME workers are not only disadvantaged in terms of

    the quantity of work they have access to, but also the quality of jobs. The

    experience of insecure work differs between different ethnic groups, but the

    overall pattern is one in which BAME workers are significantly disadvantaged

    in the labour market.

    We find 1 in 13 BAME employees are in insecure work, and strikingly 1 in 8

    Black employees are in insecure work, the average is 1 in 17.

    The Black community are over twice as likely to be in temporary work than the

    average. Not only are these workers more likely to be in temporary work, they

    have also experienced the largest increase in the number of people in temporary

    jobs between 2011 and 2016, with a striking 58 percent increase, compared to

    an overall increase of 11 per cent. 42 percent of Black workers are in all

    temporary work because they cannot find a permanent job, compared to 31

    percent of the total temporary workforce.

    The proportion of the Black community in all employment on zero hour

    contracts is 5 percent. This means almost 1 in 20 are on a zero hours contracts,

    the national average is around 1 in 36.

    We also find that in 2011 when the average self-employment rate was 13.8

    percent, the Pakistani community experienced a self-employment rate almost

    twice that at 25.3 percent. In 2016 while the Pakistani self-employment rate

    remained above 20 percent the self-employment rate for the Bangladeshi

    community almost doubled from 2011 to 20.3 per cent. Self-employment within

    the Black community also increased significantly during this time, from 7.1 to

    11.4 percent.

  • Insecure work and Ethnicity 3

    Introduction

    In December 2016 the TUC published a new report, Living on the edge, looking at the

    extent of insecure work in Britain today.1

    The report found that there are 3.2 million people who face insecurity in work in the

    UK, either because they are working on a contract that does not guarantee decent

    employment rights (including zero hours contracts, agency and casual work), or because

    they are in low paid self-employment (earning less than the government’s National

    Living Wage). In total this is one in ten of those in work.

    These people are missing out on key rights and protections at work. 1.5 million of this

    group are employed, but risk missing out on family friendly rights including maternity,

    paternity and adoption leave, the right to an itemised pay slip, and protection from unfair

    dismissal. This number has grown by 700,000 in the last decade, mostly because of the

    increase in zero hours contracts.

    The report also shows that those in insecure work experience significant pay penalties:

    Self-employed people now earn on average 60 percent of the median annual rate

    of an employee per year, down from around 70 percent a decade ago.

    Median hourly pay for those on a zero-hours contract in 2016 was worth just 66

    percent of the median for all employees.

    Median hourly pay for those working for an employment agency was worth just

    80 percent that of the average employee; for those in casual or seasonal work,

    pay was worth just 60 percent of the employee average.

    Due to low pay and irregular hours, many of these workers also miss out on sick

    pay, statutory maternity and paternity pay and the right to be enrolled

    automatically into a workplace pension. Almost half a million people on zero

    hours contracts or in insecure temporary work miss out on these rights.

    This analysis looks at how the growth of insecure work has affected different ethnic

    groups. Our previous analysis looked at the growth of insecure work over the period of

    2011 to 2016, and for consistency this data will look over the same period.

    1 https://www.tuc.org.uk/sites/default/files/Living%20on%20the%20Edge%202016.pdf

  • Insecure work and Ethnicity 4

    Employment Overview

    BAME groups are persistently disadvantaged in the labour market. The TUC believes

    that race discrimination plays a major role in explaining these inequalities, as does the

    lack of access to employment opportunities for BAME workers.

    A good starting point for the analysis is to get an understanding of the employment

    position of different ethnic groups by looking at overall employment and unemployment

    rates.

    There are striking differences in employment rates between White and BAME

    communities, with those from a minority ethnic background over ten percentage points

    less likely to be employed in 2016.

    Within ethnic minorities, however there are varying employment experiences: the Indian

    employment rate is 73 percent and very close to the UK average employment rate,

    whereas the employment rate for the Bangladeshi community is just 53.7 per cent,

    reflecting different communities differing histories and entry into the labour market.

    UK employment rate (16-64) by ethnicity 2007/2016

    1.1

    2.1

    3.1

    4.1

    5.1

    6.1

    7.1

    8.1

    Source ONS - data is average of 4 quarters in 2016

    *Ethnic Minority includes all people stating their ethnicity as non-white. This is the sum of the

    series 'Mixed', 'Indian', 'Pakistani', 'Bangladeshi', 'Chinese', 'Black 'Other'.

    In this report Black refers to Black African and Caribbean

    40

    45

    50

    55

    60

    65

    70

    75

    80

    2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

    Emp

    loym

    en

    t R

    ate

    Total White Ethnic Minority

    Mixed Indian Pakistani

    Bangladeshi Black Other

  • Insecure work and Ethnicity 5

    The table below looks at employment rates for a number of ethnic groups in the UK

    over different time periods. First, from 2007 to 2011 which allows us to look at the

    impact of the recession on the labour market, and then from 2011 to 2016, the period in

    which the labour market recovered. The data shows various patterns in the labour

    market:

    1) During 2007-2011 every ethnic group with the exception of the Pakistani and

    Bangladeshi community experienced declining employment rates as the

    recession hit the UK. However this is not to suggest that Pakistani and

    Bangladeshi workers were doing exceptionally well in the labour market, as

    these two groups have significantly lower employment rates, 46.9 percent and

    43 percent in 2007. Despite improving employment rates, their employment

    rates remain around 20 percentage points below the UK national average.

    2) The Indian community had the smallest fall during this period (2007-11) of 0.1

    percentage points. The Mixed and Black community experienced the highest

    falls in employment rate of 3.7 and 5.5 percentage points. The overall UK fall

    was 2.4 percentage points.

    3) During 2011- 2016 the labour market recovery started to take place. Whilst the

    Black community continued to have lower employment rates than the national

    average, they experienced the largest rise in employment, an increase of 10.4

    percentage points.

    UK employment rate (16-64) by ethnicity 2007-2016

    Year Total White

    Ethnic

    Minority

    *

    2007 72.7 74.2 60.1

    2008 72.6 74.1 60.4

    2009 70.9 72.5 59.2

    2010 70.4 71.8 59.7

    2011 70.3 71.9 59.1

    2012 71.0 72.6 59.5

    2013 71.5 73.3 59.8

    2014 72.9 74.6 61.5

    2015 73.7 75.4 62.9

    2016 74.4 76.1 64.2

    2007-2011 -2.4 -2.3 -1

    2016-2011 +4.1 +4.2 +5.1

  • Insecure work and Ethnicity 6

    Year Mixed Indian Pakistani Bangla

    deshi

    Black/

    Other

    2007 62.7 69.1 46.9 43.0 63.4 60.6

    2008 62.6 69.1 46.9 46.4 62.6 61.0

    2009 59.3 68.4 47.1 47.1 58.4 60.9

    2010 61.9 70.4 47.6 47.3 61.5 58.0

    2011 59.0 69.0 49.9 49.2 57.9 60.2

    2012 60.4 69.9 49.5 48.7 60.7 58.8

    2013 62.0 70.6 48.4 53.0 60.7 59.3

    2014 64.6 71.6 50.6 54.9 61.9 60.3

    2015 64.5 70.8 54.5 55.9 64.0 62.0

    2016 65.1 73.0 55.1 53.7 68.3 60.8

    2007-2011 -3.7 -0.1 +3 +6.2 -5.5 -0.4

    2011-2016 +6.1 +4.0 +5.2 +4.5 +10.4 +0.6 Source ONS – data average of quarters

    *Includes all people stating their ethnicity as non-white. This is the sum of the series 'Mixed',

    'Indian', 'Pakistani', 'Bangladeshi', 'Chinese', 'Black', 'Other'.

    Unemployment rates for different ethnic groups mirror patterns in the employment rate.

    While the employment rate for White groups is 4.4 percent, BAME workers have an

    employment rate almost double that, at 8.6 per cent.

    The graph below shows the unemployment rate for different minority ethnic groups in

    the last decade, and the persistently higher unemployment of BAME groups.

    UK unemployment rate (16+) by ethnicity 2007-2016

    Source ONS – data average of quarters

    4

    6

    8

    10

    12

    14

    16

    18

    20

    22

    2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

    Un

    emp

    loym

    ent

    rate

    Total White Ethnic Minority

    Mixed Indian Pakistani

    Bangladeshi Black Other

  • Insecure work and Ethnicity 7

    Ethnic inequalities in the labour market are also evidenced by the higher poverty rates

    among some ethnic minority groups. The Joseph Rowntree Foundation (JRF) 2produce

    the chart below using Households Below Average Income data (HBAI) from the DWP.

    This shows the poverty rate has been consistently lowest among White people. In

    2015/16, the poverty rate was 19 percent. The ethnic group with the highest risk of

    being in poverty is Bangladeshi, followed closely by the Pakistani and Black

    communities.

    Proportion of people in poverty by ethnicity 2011-2016

    AHC = After housing costs

    Source: Households Below Average Income (HBAI), Department for Work and Pensions, 2017

    * Poverty being measured as the proportion of people living in households with an after housing

    costs income below 60 percent of the contemporary median household income.

    2 http://www.jrf.org.uk/data/poverty-rate-ethnicity

  • Insecure work and Ethnicity 8

    Not only do levels of employment differ markedly among ethnic groups, types of

    employment do to. We are limiting this analysis to how different ethnic groups have

    experienced the growth in insecure work. In line with our previous analysis on insecure

    work we use the same definition:

    Forms of temporary work, including agency work, casual and seasonal work,

    where workers often miss out on key employment rights and protections,

    including family friendly rights, redundancy pay and sick pay. Our definition of

    insecure temporary work excludes those on fixed term contracts, who are

    normally entitled to the same rights as employees.

    Zero-hours contracts, where workers face insecurity about their incomes and

    hours of work, and often miss out on key employment rights.

    Low paid self-employment, where workers miss out on employment rights and

    income related protections (such as sick pay and maternity pay), but cannot

    afford a safety net for those periods when they cannot work.

    Insecure Employees

    In our Living on the edge report we found that of the 3.2 million total, 1.5 million are

    employed, but risk missing out on family friendly rights including maternity, paternity

    and adoption. This analysis now looks at these insecure employees by ethnicity, and

    finds BAME groups are more likely to be an insecure employee than their White

    counterparts. Most strikingly 1 in 8 Black employees are in insecure work, this is double

    the average of 1 in 17, and 1 in 20 for the White community.

    Insecure employees in 2016

    All BAME White Black

    Insecure

    temporary

    work-

    ( agency, casual, seasonal,

    other ) this excludes fixed

    term contracts 729,623

    133,303

    596,319 52,819

    Zero- hours

    contract

    workers -

    excludes those who are self-

    employed, and those who

    would be included in the

    category above

    806,911

    107,531

    699,380 40,280

    Total insecure

    employees

    Total of insecure temporary

    work and zero hours

    contracts 1,536,534

    240,835

    1,295,699 93,099

    Insecure

    employment

    rate

    Insecure work as a

    proportion of employees 6%

    8%

    5% 12%

    *Note overall total is slightly different to that published on Living on the Edge as more recent data has

    become available- source ONS nesstar average of q2 +q4 2016

  • Insecure work and Ethnicity 9

    Temporary Work

    The following analysis breaks down the data on temporary work by ethnicity. It is

    immediately clear that the Black community are over twice more likely to be

    represented in temporary work than the average.

    Proportion of temporary workers in employment- in each ethnic group

    2016

    9.1

    10.1

    11.1

    12.1

    13.1

    14.1

    15.1

    16.1 Source ONS nesstar- average of quarters

    In 2011 the White population were least likely to be working in temporary jobs

    compared to other ethnic groups at 2.9 percent, this total remains constant at 2016

    however, and in 2016 it is the Indian community least likely to be in this form of

    employment.

    17.1

    18.1

    19.1

    3.1%

    0.0%

    1.0%

    2.0%

    3.0%

    4.0%

    5.0%

    6.0%

    7.0%

    8.0%

    9.0%

  • Insecure work and Ethnicity 10

    Temporary work by ethnicity in 2011 and 2016

    2011 2016

    Ethnicity

    Numbers

    in

    temporary

    work

    Proportion of

    temporary

    workers in all

    employment-

    in each ethnic

    group

    Numbers

    in

    temporary

    work

    Proportion of

    temporary

    workers in all

    employment- in

    each ethnic

    group

    White 758,823 2.9% 818,815 2.9%

    Mixed/multiple ethnic

    background* 9,605 4.1% 15,098 4.4%

    Indian 33,123 4.6% 22,697 2.7%

    Pakistani + Bangladeshi** 17,178 3.6% 22,693 3.8%

    Other Asian background 15,091 4.5% 20,572 5.7%

    Black 44,013 6.4% 69,365 7.8%

    Other ethnic group 14,405 4.0% 19,070 4.3%

    N= 895,827 3.1% 995,013 3.1% Source ONS nesstar- average of quarters

    * This data needs to be taken with caution as data under 10,000 are under the reliable validity

    level

    ** Pakistani and Bangladeshi have been added together as they had low sample sizes

    individually.

    The following table looks at the growth in temporary work among different ethnic

    groups between 2011 and 2016. The overall increase is 11 percent, while White

    communities saw an 8 percent increase in the number of people in temporary work, for

    the Black community it is a 58 percent increase. So not only are the Black community

    more likely to be in temporary work, they have also experienced the largest increase

    since 2011.

    In contrast the Indian community had a fall of 31 percent over the period. In 2011 the

    proportion of temporary workers in employment was above the national average at 4.6

    percent of employment, in 2016 this is 2.7 percent, below the average of 3.1 percent, so

    this ethnic group has experienced improved outcomes in this form of employment.

  • Insecure work and Ethnicity 11

    Change in temporary work from 2011- 2016 by ethnicity

    Ethnicity

    % increase in

    temporary

    work

    change in

    proportion

    White 8% 0

    Mixed/Multiple ethnic groups* 57% 0

    Indian -31% -2

    Pakistani + Bangladeshi** 32% 0

    Any other Asian background 36% 1

    Black 58% 2

    Other ethnic group 32% 0

    N= 11% 0 Source ONS nesstar- average of quarters

    * This data needs to be taken with caution as data under 10,000 are under the reliable validity

    level

    ** Pakistani and Bangladeshi have been added together as they had low sample sizes

    individually.

    Looking at the growth in temporary work for the Black community in a little more detail

    shows us further disadvantages in the labour market. The growth in temporary work for

    the Black community has been female dominated. The overall increase in temporary

    work for this community was 58 percent during 2011-2016. For women however it was

    a massive 82 percent, while the proportion of Black men in temporary work increased

    by 37 percent.

    When looking at this as proportion of all employment there is a 0.4 percentage point

    increase in temporary work for the Black community. For women it is a 2.5 percentage

    point increase to 8.1 percent. This means that one in twelve women in the Black

    community in all employment are in this form of insecure employment.

    Black temporary workers by gender 2011 and 2016

    Temporary

    Work

    Proportion of temporary

    workers in all

    employment- in each

    ethnic group

    2011

    Male 23,536 7.1%

    Female 20,477 5.6%

    2016

    Male 32,191 7.5%

    Female 37,174 8.1% Source ONS nesstar- average of quarters

  • Insecure work and Ethnicity 12

    Change in Black temporary workers by gender 2011- 2016

    Change from 2011- 2016

    Percentage

    increase in

    total

    Proportion of

    temporary workers in

    all employment- in

    each ethnic group

    Male 37% 0.4%

    Female 82% 2.5% Source ONS nesstar- average of quarters

    When further breaking this down by occupation, the largest occupation Black temporary

    workers are in (using the wider definition of temporary work which includes fixed term

    contracts) is ‘caring personal services’ at 17.1 percent, the average for all temporary

    workers in this occupation is 4.6 percent.

    Involuntary temporary work

    Involuntary temporary work, that is, those working on a temporary basis as they cannot

    find permanent work (rather than out of a preference for this type of work) is on average

    around 31 percent. For the Black community however it is significantly higher, at a

    staggering 42 percent. Close to half of this group who are in temporary work are there

    because they could not find permanent work, reflecting the fact that Black workers have

    significantly fewer choices in the labour market.

    Involuntary temporary* work 2016 by ethnicity

    Ethnicity

    Could not find

    permanent job

    Proportion in

    involuntary

    work

    White 411,587 30%

    Mixed/Multiple ethnic groups ** 8,482 30%

    Indian 14,412 35%

    Pakistani + Bangladeshi *** 13,485 38%

    Any other Asian background** 9,015 35%

    Black 36,000 42%

    Other ethnic group 11,991 40%

    Total 509,249 31% Source ONS nesstar- average of quarters

    * In this table temporary work – includes all temporary work i.e. fixed term contracts

    ** This data needs to be taken with caution as data under 10,000 are under the reliable validity

    level

    ***Pakistani and Bangladeshi have been added together as they had low sample sizes

    individually.

  • Insecure work and Ethnicity 13

    Zero hours contracts

    Zero hours contracts are insecure work where the balance of power is tilted decisively in

    favour of employers, with workers often not knowing how many hours they will work

    each week, and facing the cancellation of shifts at short notice by employers.

    The latest published data on the number of people employed on ‘zero-hours contracts’,

    based on the Labour Force Survey (October – December 2016) is 905,000. This latest

    estimate is 101,000 higher than that for October to December 2015, and is up from 2.5

    percent of people in employment to 2.8 percent.

    Growth in zero hours contracts 2001 Q4 to 2016 Q4

    Source ONS – note data is not seasonally adjusted

    When breaking down the zero hours contracts data by ethnicity we find a similar pattern

    to that of the breakdown of temporary workers. The proportion of the Black community

    in all employment on zero hours contracts is almost 5 percent, this is almost 1 in 20,

    whereas the national average is around 1 in 36. The White community is in line with the

    national average, and the Indian community are the least likely to be on zero hours

    contracts.

    Numbers in zero hours contracts 2016 by ethnicity

    0.0

    0.5

    1.0

    1.5

    2.0

    2.5

    3.0

    0

    100,000

    200,000

    300,000

    400,000

    500,000

    600,000

    700,000

    800,000

    900,000

    1,000,000

    20

    00

    20

    01

    20

    02

    20

    03

    20

    04

    20

    05

    20

    06

    20

    07

    20

    08

    20

    09

    20

    10

    20

    11

    20

    12

    20

    13

    20

    14

    20

    15

    20

    16

    % o

    f p

    eop

    le in

    em

    plo

    ymen

    t o

    n a

    ZH

    C

    Nu

    mb

    ers

    in Z

    ero

    ho

    ur

    con

    trac

    ts

    In employment on a zero hours contract

    Percentage of people in employment on a zero hours contract

    Ethnicity

    Numbers

    in zero

    hours

    contracts

    White 754,379

    Mixed/Multiple ethnic groups 14,483

    Indian 14,787

  • Insecure work and Ethnicity 14

    Source ONS nesstar – Average of q2 + q4 data – note figures may vary slightly from published ONS release

    Proportion in zero hours contracts 2016 by ethnicity

    Source ONS nesstar – Average of q2 + q4 data – note figures may vary slightly from published ONS release

    * Pakistani and Bangladeshi have been added together as they had low sample sizes individually.

    ** A comparison of the experiences of different ethnic groups in the growth of zero hour

    contracts from 2011 to 2016 is not possible,, due to the data size being too small in 2011 for

    valid comparison.

    It is possible to look at ethnicity and gender for zero hours contracts for 2016, however

    we are limited to White and Black groups due to data size. In general women are more

    likely to be on zero hour contracts, just over half 52 percent, yet for the Black women it

    is around 60 percent. Around 5.5 percent of Black women in all employment are on zero

    hours contracts compared to 4 percent of men.

    Proportions in zero hours contracts of all employment- 2016 - by ethnicity

    and gender

    Ethnicity Male Female Total

    White 2.3% 3.1% 2.7%

    Black 4.0% 5.5% 4.8%

    Source ONS nesstar – Average of q2 + q4 data

    2.75%

    0% 1% 2% 3% 4% 5%

    Black

    Mixed/Multiple ethnic groups

    Any other Asian background

    Other ethnic group

    Pakistani

    Average

    White

    Indian

    Bangladeshi

    Pakistani + Bangladeshi* 15,114

    Any other Asian background 13,357

    Black 43,868

    Other ethnic group 15,383

  • Insecure work and Ethnicity 15

    Self-employment

    The rise in self-employment has been well documented. Self-employment now makes

    up 15 percent of the work force, up from 13.0 percent in 2007 and 13.8 percent in 2011.

    There are almost 5 million people currently in self-employment.

    Self- employment since turn of the century

    Source ONS

    Our concern is that while some people may have moved in to self-employment out of

    choice, others may have been forced in to self-employment as they were unable to find

    alternative employment, and the growth of self-employment has come at the expense of

    more secure employee jobs and the loss of key employment rights.

    There is also concern about ‘bogus self-employment’. Trade Unions have found that

    employers are increasingly labelling their workers as self-employed contractors to avoid

    providing employment rights and national insurance contributions.

    There is now widespread evidence that the pay of self-employed people is both

    significantly lower than that of employees, and that self–employment has become less

    financially rewarding over time. The family resources survey shows that self-employed

    people earn on average 60 percent of the median annual rate of an employee per

    year3. Research from the Social Market Foundation4 shows that 45 percent of the self-

    3https://www.gov.uk/government/statistics/family-resources-survey-financial-year-201415 4 http://www.smf.co.uk/wp-content/uploads/2016/10/Social-Market-Foundation-SMF-Tough-Gig-Tackling-low-paid-self-employment-in-London-and-the-UK-October-2016.pdf

    2,500,000

    3,000,000

    3,500,000

    4,000,000

    4,500,000

    5,000,000

  • Insecure work and Ethnicity 16

    employed aged 25 or over (1.7 million individuals) are paid below the National Living

    Wage (£7.20 an hour). For employees the risk of low pay is around 20 per cent.

    The Social Market Foundation analysis also reports low paid self-employment is

    concentrated in construction, administrative and support activities, transport and storage,

    professional scientific and technical, and wholesale and retail.

    The TUC analysis in ‘Living on the edge’ included the 1.7 million in low paid self-

    employment in the total figure of 3.2 million, and our analysis on insecure work by

    industry and region also looked at low paid self-employment. The analysis on ethnicity

    and low paid self- employment is more difficult to replicate, due to data available,

    however some inferences can be made by looking at self –employment overall.

    Whereas our previous analysis showed that the Black community were

    disproportionately in temporary work and zero hours contracts, when it comes to self-

    employment it is the Pakistani and Bangladeshi community that stand out. In 2011,

    when the average self-employment rate was 13.8 percent, the Pakistani community

    experienced a self-employment rate almost twice that at 25.3 percent. The White

    community were in line with the UK average, and the Black community were

    significantly below at 7.1 percent.

    In 2016 while the Pakistani self–employment rate remained above 20 percent the self-

    employment rate for the Bangladeshi community almost doubled to 20.3 percent, and

    the Pakistani and Bangladeshi self-employment rates are significantly above the UK

    average. For the White community the increase from 2011 to 2016 was roughly in line

    with the national average of 1.2 percentage points, and while the self-employment rate

    of the Black community remains below the UK average it did increase significantly by

    4.3 percentage points.

    Self-employment by ethnicity 2011- 2016

    Proportion

    2011

    Proportion

    2016

    Change in

    proportion

    from 2011-2016

    Total 13.8% 15.0% 1.2

    White 13.9% 15.0% 1.1

    Ethnic Minority* 12.9% 15.1% 2.2

    Mixed 11.0% 14.8% 3.8

    Indian 11.7% 13.1% 1.4

    Pakistani 25.3% 23.4% -1.9

    Bangladeshi 12.2% 20.3% 8.1

    Black 7.1% 11.4% 4.3

    Other 14.4% 15.8% 1.4

    Source ONS – data average of quarters

    *Includes all people stating their ethnicity as non-white. This is the sum of the series 'Mixed',

    'Indian', 'Pakistani', 'Bangladeshi', 'Chinese', 'Black', 'Other'.

  • Insecure work and Ethnicity 17

    Overall men are more likely to be in self-employment, the UK average is around 19

    percent, for the Pakistani and Bangladeshi community it is 29 and 24 percent. And when

    breaking this down further by minor occupation, almost 50 percent (48%) of male self-

    employed Pakistani and Bangladeshi are ‘road transport drivers’, a low paid self-

    employed occupation.

    Self – employment rate for men – 2011-2016

    2011 2016

    change from

    2011 -2016

    Total 18.2% 19.1% 0.9%

    White 18.3% 19.0% 0.7%

    Ethnic Minority* 17.1% 19.6% 2.5%

    Mixed 11.9% 17.9% 6.0%

    Indian 14.6% 16.4% 1.7%

    Pakistani 32.1% 29.4% -2.7%

    Bangladeshi 15.8% 24.2% 8.4%

    Black 10.2% 16.6% 6.4%

    Other 17.7% 19.6% 1.9%

    Source ONS – data average of quarters

    *Includes all people stating their ethnicity as non-white. This is the sum of the series 'Mixed',

    'Indian', 'Pakistani', 'Bangladeshi', 'Chinese', 'Black', 'Other'.

    Self – employment rate for men - 2016

    Policy recommendations.

    Source ONS

    * It is not possible to replicate the same data for women as the sample sizes get to small for

    comparison.

    19.1%

    10.0%

    15.0%

    20.0%

    25.0%

    30.0%

    35.0%

  • Insecure work and Ethnicity 18

    Policy recommendations

    The report highlights the need for concerted and co-ordinated action to address the

    increasing marginalisation of Black and minority ethnic workers in the labour market.

    The TUC believes that access to and progress within employment is central to the

    participation of Black and minority ethnic communities in society. Without

    employment, people from Black and minority ethnic communities suffer from social

    exclusion, poverty and an insurmountable barrier to social mobility.

    This report also highlights the need for a concerted and co-ordinated action by the

    government to eliminate racial discrimination in the labour market and to tackle the

    increasing exploitation and exclusion from employment rights faced disproportionately

    by Black workers as a result of the increase in the use of non-permanent working

    arrangements.

    The TUC believes that measures need to be taken to tackle the employment crisis faced

    by Black and minority ethnic workers as a result of their increasingly precarious

    position in the labour market and is therefore calling for the following:

    That government should abandon the philosophy of voluntarism being adequate

    to address the race discrimination that exists in the private sector and as matter

    of urgency introduce legislation that places all employers under a duty to

    promote racial equality and to monitor the impact of such measures.

    Government should take measures to tackle the insecurity in the labour market

    that has a disproportionate impact on Black and minority ethnic workers. These

    should include:

    Giving workers a day one right to a written statement of terms and conditions,

    including their expected hours of work. Reforming the rules on employment

    status to ensure that all workers benefit from the same employment rights,

    including statutory redundancy pay, protection from unfair dismissal and family

    friendly rights.

    Banning zero hours contracts, by giving workers who work regular hours a right

    to a written contract guaranteeing their normal hours.

    Cracking down on false self-employment, including by introducing a

    presumption that everyone is an employee unless the employer can demonstrate

    otherwise.

    Ending the pay penalty for those in agency work, by ending the ‘Swedish

    Derogation’, a loophole which allows some agency workers to be paid less than

    the going rate for the job.

    That government should support better enforcement of employment rights by

    abolishing employment tribunal fees that are creating barriers for Black and

  • Insecure work and Ethnicity 19

    minority ethnic workers to be able to seek redress when faced with exploitation

    and discrimination at work.

    That the government should promote permanent and secure employment by

    taking measures to reduce the use of agency workers and temporary, fixed term

    and zero hours contracts in national and local government services.

    That government should take action to ensure that there is better access for all

    workers to union representation and collective bargaining.